dailyhodl.com
Leading analytics firm Glassnode says that Bitcoin ($BTC) holders are withdrawing from crypto exchanges at an astounding pace.
According to the insights platform, Bitcoin investors have taken it upon themselves to take custody of their $BTC troves after the implosion of crypto exchange FTX.
Glassnode says that crypto exchanges are now witnessing a massive exodus of Bitcoin at a rate of over $1.75 billion in $BTC per month.
“Following the collapse of FTX, Bitcoin investors have been withdrawing coins to self-custody at a historic rate of 106,000 $BTC/month.
This compares with only three other times:
– Apr 2020
– Nov 2020
– June-July 2022.”
With Bitcoin flying off of crypto exchanges, Glassnode notes that all wallet cohorts from shrimp to whales are seeing huge spikes in their $BTC balances.
“The failure of FTX has created a very distinct change in Bitcoin holder behavior across all cohorts.
The balance change has been dramatic across all cohorts since November 6th:
Shrimp [<1 $BTC] = +33,700 $BTC
Crab [1-10 $BTC] = +48,700 $BTC
Sharks [10-1,000 $BTC] = +78,000 $BTC
Whales [>1,000 $BTC] = +3,600 $BTC.”
Looking at stablecoins, Glassnode highlights that traders flooded crypto exchanges with dollar-pegged crypto assets after the meltdown of FTX, suggesting that market participants are gearing up to buy the dip.
“This week also saw one of the most dramatic one-day inflows of stablecoins across all exchanges on November 10th. Over $1.04 billion worth of stablecoins flowed into exchanges following the collapse of FTX.”
According to Glassnode, the abrupt change in trader behavior has pushed stablecoin reserves across crypto exchanges to a fresh all-time high of $41.18 billion.
Glassnode concludes,
“On net, there appears to be a transition in investor holdings.
– Stablecoins are flowing into exchanges
– Trustless assets like $BTC and ETH are flowing out
This leads to a net increase in stablecoin ‘buying power’ on exchanges of ~$4 billion per month.”